April 29, 2025
CFPB: Enforcement of Fair Credit Reporting Act applies to ‘bossware’ decision-making
Employers using reports gleaned from artificial intelligence systems designed to monitor their workers -- and determine their fates -- must first gain permission to implement them and otherwise adhere to requirements outlined in the Fair Credit Reporting Act, according to the Consumer Financial Protection Bureau.
A circular the bureau released Oct. 24 “warns that companies using third-party consumer reports -- including background dossiers and surveillance-based, ‘black box’ AI or algorithmic scores about their workers -- must follow FCRA rules.”...